Australia’s luxury market surpasses international growth
The second annual in-depth report of the Australian luxury product market shows, as predicted, that growth in this market sector in 2011 rose by 11.2% against a global luxury goods growth of 8.9%. In fact, the current growth estimate of the Australian luxury market exceeds that of global by a total of 2.3%, confirming that indeed the luxury market has defied the global economic downturn in 2011. While this growth is positive, it is anticipated there may be a fall in 2012 sales due to macroeconomic issues affecting the world, such as the European Debt Crisis, and weak demand in the U.S. as well as China causing many luxury brands to revise expected profits for 2012 downwards.
‘Australian Luxury Market – 2011’ report by MO Luxury also highlights that: foreign wealthy travellers (especially Asians) account for 30 to 40% of luxury sales in Australia; few international luxury brands offer online shopping for Australia; around 40% of Australian households are potential luxury consumers, as luxury is no longer regarded as the privilege of the wealthy elite but available to a wider middle class.
Upcoming luxury store openings in Australia by major international brands include: Chanel (Perth), Tiffany (Sydney), Zegna (Brisbane) – all mono-brand stores.